Yes, I did include the Scala SDK as part of the setup. I followed all of the instructions on the video (https://www.coursera.org/lecture/progfun1/tools-setup-for-mac-os-x-UzicG). The project creation starts at 9:00, and the point where I had trouble is at 13:11. It even automatically created the Scala folder inside our project, which is where we were trying to create the Scala worksheet.

I also ran into this exact same issue while trying to do the setup for Windows (Windows 10 Pro), also following directions from the same Coursera course. Scala Worksheet does not show up as a possible option. When I tried to roll back to the version of sbt used in the video, I just got a bunch of errors instead.